MEASURING FINANCIAL LITERACY - Forsiden - …aksjenorge.no/.../04/OECD-Measuring-financial-literacy-by-Dr-Adele... · Toolkit on measuring Financial Literacy and inclusion ... Developing

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Adele Atkinson OECD

• Background

– OECD project on financial education

– OECD tools and instruments

• National Strategies

• Measurement



Dedicated OECD work through the International

Network on Financial Education (INFE)

• under the aegis of the OECD bodies responsible for financial education

Dedicated OECD project on financial education since 2002…

• Including now over 200 institutions from 114 countries and economies

• Different levels of engagement: Full and regular membership

• Global and regional policy platforms and regular meetings to share good practice, collect data, develop analytical and comparative studies, methodologies, policy instruments and practical guidance on key priority areas related to financial education

…deepening in 2008 with the creation of the INFE

• as a complement to consumer protection, financial regulation and financial inclusion policies

… and within the framework of the G20 since 2011


The Overall Framework (2012) OECD/INFE High-level Principles

on National Strategies for Financial Education

General instruments


Principles and Good practices on Financial Education and Awareness

•2015 OECD/INFE Policy Handbook on the Implementation of National Strategies

Sector-specific Good Practices 2008

2 Good Practices for Financial Education relating to Private Pensions & for Enhanced Risk Awareness and Education on Insurance issues 2009

Good Practices on Financial Education and Awareness relating to Credit

Methodological tools


High-level Principles for the Evaluation of Financial Education Programme

• 2015

Toolkit on measuring Financial Literacy and inclusion •Core competency framework for youth

Target Audiences


OECD/INFE Guidelines for Financial Education in Schools


OECD/INFE Policy guidance on addressing women’s and girls’ needs for financial education

OECD/INFE tools and instruments


• Data

• Policy priorities

• key target groups

• (need data)

A mandate to an

organisation or individual to take things


Funding and a strategic

vision of how the funding will be used


and cooperation

between different

sectors and across


Measurable and realistic

goals and regular


Essential components of a national


Practical steps for a national strategy

Mapping of existing

resources and stakeholders

Avoid duplication of


Identify successful practices

Identify trusted


Survey of financial literacy

level Target groups

Needs and gaps

Identify/refine main policy


Consultation process amongst key stakeholders

Start elaborating coordination mechanisms

Build trust and consensus

National awareness and communication

Raise awareness

Attract relevant


Reinforce buy-in



• Direct government funding

• Departmental budgets

• Levies on the financial service sector

• Money from fees/fines

• In-kind resources (trainers, materials, premises etc)

• Mandated private provision (CSR)

Potential sources of funding



Survey instrument to capture financial literacy…

…a combination of awareness, knowledge, skill, attitude and behaviour necessary to make

sound financial decisions and ultimately achieve individual financial well-being

…in a representative sample of adults, and available in a Toolkit:

– Questionnaire (core) and optional questions

– Methodological notes; Interviewer briefings

At their summit in St Petersburg in Sep 13,

‘G20 Leaders welcomed and supported its use.

OECD / INFE survey to measure

financial literacy and financial inclusion

Results comparable across countries and over time

OECD/INFE financial literacy survey

…as well as on its relationship with


Budgeting, saving, choosing products, paying

bills on time, retirement

planning etc

Fin knowledge

Simple and compound interest, Inflation, time value of money, Risk and

return, Risk diversification

Fin attitudes

Propensity to save vs spend,

Time preference, etc.

Financial inclusion

Financial products awareness, use and

recent choice


Age, Gender, Education, Work,


Wellbeing; Fraud; self-assessment of

financial knowledge

Developing the questionnaire

2009: Review of available national surveys to identify good practice questions, typical content & appropriate methodology for data collection and analysis

Discussions with experts and country representatives to choose the most important questions and the best combination of questions

2010: Widespread piloting

Fine-tuning of questionnaire

Revisited in 2014; slightly updated for 2015


Using the Core Questionnaire

Standalone survey tool for use across a wide range of


Questions can also be incorporated with a national survey

Responses can be analysed alone, or combined to create a score

Survey exercise can be repeated using the same questionnaire to measure

changes over time

Data collection can be coordinated with other

countries or surveys


• Albania, Austria, Belarus, Belgium, Brazil, BVI, Canada, Croatia, Czech Republic, Estonia, France, Hong Kong (China), Hungary, Latvia, Lithuania, Netherlands, New Zealand, Norway, Poland, Portugal, Russia, Thailand, Turkey, UK (24 economies

• Initial results from Europe released April 20th

• More detailed results due in October 2016

Example results: % scoring 5, 6 or 7 on

financial knowledge (score range 0-7)

Example results: household has a


Example results: average overall score

by gender (score range 1-21)

• Financial literacy levels depend on a wide range of factors; some of which can be addressed through financial education

• A national approach provides the greatest opportunity to make a significant difference – combining efforts to reach key target groups and cover main topics

• Policy makers need data to inform and guide financial education, and to monitor progress

• There is no single question that can be used to measure financial literacy, but we can gauge levels through surveys and tests; focusing on the issues that are most relevant

• There are opportunities to learn from other countries: many issues that are relevant around the world – and many of these are being addressed in several countries. The OECD/INFE and co-ordinated measurement exercises help to maximise the benefit of this process



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